Trump’s India Tariff: Trade War Escalates | Aakhir Tak

Aakhir Tak – In Shorts

President Trump imposed tariffs on India Thursday. The announcement preceded a meeting with Prime Minister Modi. No exemptions will be granted to any country. India is now part of America’s trade war. Trump claims India imposes more tariffs than others.

Aakhir Tak – In Depth

US President Donald Trump made a significant trade decision on Thursday. He announced the imposition of tariffs on India. This move came just hours before his scheduled meeting with Prime Minister Narendra Modi, escalating trade tensions between the two nations. Trump made it clear that no exemptions would be granted to any country. India, which had previously avoided direct tariffs, now finds itself in the same position as other nations.

Trump stated that the US will impose reciprocal tariffs on all countries that levy duties on American imports. The aim of this move is to create a “level playing field.” Trump also claimed that “India imposes more tariffs than any other country.” He further stated that allies are often “worse than our enemies” on trade.

According to a White House official, these tariffs will not take effect immediately. Trump’s trade and economic team is reviewing bilateral tariff and trade dynamics. Implementation is expected in the coming weeks. Trump also asserted that a value-added tax (VAT) system would be considered a tariff.

Trump emphasized that nations rerouting merchandise through third countries to bypass tariffs will not be spared. He acknowledged that his measures could lead to short-term price increases, but insisted that tariffs are a necessary tool for correcting trade imbalances. “Tariffs are great,” he declared.

Trump’s reciprocal tariff policy aims to counter the higher duty rates imposed by other nations. It seeks to address non-tariff barriers, such as complex regulations, value-added taxes, government subsidies, and currency manipulation. According to Trump, these factors have unfairly restricted US exports. For instance, agricultural products from the US face high duties in many countries, hurting American farmers. This policy could reshape US-India trade relations.

Since taking office on January 20, Trump has already taken aggressive steps on trade, including announcing sweeping tariffs on all steel and aluminium imports set to take effect on March 12. Additionally, he has imposed a 10% tariff on goods from China and placed a 30-day hold on tariffs on imports from Canada and Mexico. This trade war presents a challenge for India.

Aakhir Tak – Key Takeaways to Remember

• Donald Trump imposed tariffs on India.
• The announcement came before the Modi meeting.
• No country will receive exemptions.
• India imposes more tariffs than other countries.

Aakhir Tak Editor-in-Chief

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